NQ Mobile plans to take “all appropriate legal actions to defend itself against these charges and to protect the interest of shareholders,” the company said in a statement.

Shares of NQ Mobile closed at $12.09 Thursday after falling as low as $8.56 in the hours after Muddy Waters released its report slamming the Beijing- and Dallas-based firm, down from the $22.88 closing price the day before. On Friday, the stock dropped 12% to $10.63 on more than five times its average daily trading volume.

Muddy Waters, which is betting against NQ Mobile, alleged in its report that the company was a “massive fraud” and that its rightful stock price was “zero.” Among other allegations, Muddy Waters contended that NQ Mobile had far overstated its presence in China both in terms of the size of its paying user base and market share.

The firm also alleged NQ Mobile’s biggest customer was itself, through a shell company called Yidatong. Muddy Waters’ 81-page report, which it tweeted a link to Thursday afternoon, chronicled attempts to track down Yidatong’s offices that repeatedly found that the addresses did not exist, that the offices were empty or that that building management had not heard of Yidatong.

Without rebutting most of Muddy Waters’s allegations point by point, NQ Mobile said the allegations “fail to take into account various factors necessary to understand the matters addressed.”

Muddy Waters also made “misrepresentations” about the management team, the company’s products and business practices, the statement said.